Question

Paying Vendors by Direct Deposit

Forum|Forum|7 years ago
December 11, 2018
1 reply
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I know how to set up a company and employees to pay by Direct Deposit, but cannot find where to set up Vendors to pay for Direct Deposit.

Comparing 2 separate Desktop 2018 clients - One has the Direct Deposit option next to Additional Info tab in a Vendor record, the other QB file does not.

QuickBooks Desktop

K

KhimG

Welcome to the Community, @SAustin11.

I just got the information you need to set up vendors for Direct Deposit (DD) in QuickBooks Desktop (QBDT).

Before signing up for Intuit Direct Deposit service, make sure your vendor is a 1099 independent contractor and you have an active payroll subscription.

If you’re using QuickBooks Desktop Payroll Basic, Standard and Enhanced, direct deposit for paying employees must be active to activate paying 1099 vendors.

Here’s how to sign up direct deposit for independent contractors:
1. Go to Vendors from the top menu and open Vendor Center.
2. Choose a vendor and double-click their name.
3. On the Edit Vendor window, choose the Additional Info tab and select the Direct Deposit button.
4. Once the Payroll Service Account Information opens, select the Activate link under Direct Deposit, next to 1099 Vendors for QuickBooks Desktop Basic, Standard and Enhanced. For QuickBooks Desktop Payroll Assisted, skip to the next step.
5. Enter your Direct Deposit Pin and select Continue.
6. Follow the onscreen instructions until you get to the Confirmation screen.

Now, you’ll be able to start setting up your independent contractors for direct deposit. Make sure to collect their bank account information before paying vendors.

To add direct deposit information to your independent contractors follow the steps below:
1. Go to Vendors from the top menu and open the Vendor Center.
2. Choose a vendor and double-click their name.
3. Select the Additional Info tab and click the Direct Deposit button.
4. Choose the Use Direct Deposit for: [Vendor Name] box. Enter your vendor’s bank account information.
5. Place a check mark on the box to select Send confirmation direct deposits to [email address] for Intuit to send an email confirming payment.
6. When prompted, enter your direct deposit PIN.

For more information, check out this article: Manage direct deposit for independent contractors in QuickBooks Desktop Payroll. Screenshots are provided within the article.

If your vendor is not an independent contractor, you’ll need to sign up for QuickBooks Bill Pay as your payment service.

That's it. Please let me know if there's anything else I can do for you. I'll be here to help. Wishing you and your business continued success!

O

orion678

Is it possible to set-up all vendors as 1099 vendors and use direct deposit instead of online billpay?

Thanks

Stan

Rose-A

Good day, orion678.

I'd be happy to help you set up and use direct deposit for your vendors in QuickBooks Desktop.

To answer your question, yes, you can set up all your vendors as 1099 and use direct deposit to pay them. You can follow the steps below to sign up your vendors for direct deposit.

Open the Vendor Center.
Select a vendor and double-click their name. The Edit Vendor window will open.
Choose the Additional Info tab and select the Direct Deposit button. This will open the Payroll Service Account Information page.
For QuickBooks Desktop Payroll Basic, Standard & Enhanced only: Under Direct Deposit, next to 1099 Vendors, select the Activate link. For QuickBooks Desktop Payroll Assisted, skip to the next step.
Enter your Direct Deposit PIN and select Continue.
Follow the onscreen instructions until you get to the Confirmation screen. Now you will be able to set up your independent contractors for direct deposit.<
Continue below for steps adding direct deposit information to your independent contractors.